In this declining market, steer away from these stocks

Nifty 50 has fallen over 18 per cent from its all-time high and continues to fall. In such a negative environment, we have selected stocks to avoid. Continue reading to learn more.

Nifty 50 has fallen roughly 18 per cent from its all-time high of 18,604.45 set on October 19, 2021. Furthermore, it is very close to meeting the criteria of a bear market.

It is commonly assumed that a bear market exists when the market falls more than 20 per cent from its all-time high. Furthermore, many types of research carried out on the subject reveal that it takes an average of eight months to reach the bottom of the bear run.

However, there have been instances, as in March 2020, where the bear market was brief. This behaviour is commonly observed when there is merely a price correction. However, in the majority of bear markets, price correction is followed by time correction.

This is also visible in today's market. The markets are being dragged down by a variety of global and domestic economic issues. This is clear, as we have seen a constant selloff from Foreign Institutional Investors (FII).

Nifty 50, on the other hand, would have strong support between 15,000 to 15,050, a breach of which would send markets lower to 14,300. The levels of 15,700 to 15,850 would function as a barrier to the north.

The stocks listed below should be avoided in the current market environment.